I have worked for my fathers 20 year old company for 5 years now. He runs the company with 3 virtually silent partners. I am concerned about the future of this company. I have received an RME. This means that if something happens to my dad I could continue the company. I could also begin one myself. You need an RME in TN to have a Fire Protection Company.
At the moment I think my hands are tied, but would love to know your opinions and advice. They have a life insurance policy for my dad only. So they can continue the company. I feel the life insurance policy should have been taken out on each partner so the shares can be bought. They have no buy-sell agreement so the shares will go to their heirs. My dad does not agree with me on this.
The company made over a million dollars last year. Most of this was paid to a management company that they also own. Leaving only a 40K profit for our company. I have almost 100k for collataral between my house, cars, bank accounts, sports memorabilia, jewelry, and credit cards. Would a SBA loan be a possibility for me. I would like to attempt a buyout of the oldest partner.
If I could not buyout both our company and the management company. Would it be possible to just buy the shares of our company and keep the management agreement with the management company till a set time. That way me, my brother, and my dad will own our company to continue to the next generation. The other owners will continue to get compensation for several more years.
Will either of these ideas work? is there another avenue I am not considering? Or am I just odd man out here with little control of the situation? Thank you for any help you can offer. BTW my dad currently sees no problem with this situation and probably will not until it is too late to do anything about it.
At the moment I think my hands are tied, but would love to know your opinions and advice. They have a life insurance policy for my dad only. So they can continue the company. I feel the life insurance policy should have been taken out on each partner so the shares can be bought. They have no buy-sell agreement so the shares will go to their heirs. My dad does not agree with me on this.
The company made over a million dollars last year. Most of this was paid to a management company that they also own. Leaving only a 40K profit for our company. I have almost 100k for collataral between my house, cars, bank accounts, sports memorabilia, jewelry, and credit cards. Would a SBA loan be a possibility for me. I would like to attempt a buyout of the oldest partner.
If I could not buyout both our company and the management company. Would it be possible to just buy the shares of our company and keep the management agreement with the management company till a set time. That way me, my brother, and my dad will own our company to continue to the next generation. The other owners will continue to get compensation for several more years.
Will either of these ideas work? is there another avenue I am not considering? Or am I just odd man out here with little control of the situation? Thank you for any help you can offer. BTW my dad currently sees no problem with this situation and probably will not until it is too late to do anything about it.
